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Mr. Laws: I understand the hon. Gentleman’s views, although I do not agree. If he is not going to go on to discuss this, does he feel that the Government ought to be micro-managing other areas, such as the regularity with which the committees are reviewed, the number of staff or their terms and conditions? Or does he share some of the views expressed not only by me but by Kathleen Tattersall in her note to the Committee?
Mr. Gibb: I am sympathetic to the hon. Gentleman’s point about the micro-detail, such as how often to review the committee structure of Ofqual. If it is being held to account for its performance, it needs to be given as much leeway as possible to carry out its role. Having said that, there is a role for Ministers in ensuring that such non-departmental public bodies do not empire-build and expand the number of employees within their remit without recourse to the Secretary of State who is, after all, responsible to Parliament and the public for how our taxes are spent. It is important that a firm grip is kept on the number of people employed.
Mr. Laws: Is not that necessary oversight exercised through budget control?
Mr. Gibb: Yes, but unless we keep a grip on all aspects that lead to high budgets, the result can often be regarded as the bleeding stump policy: “Oh, Minister, we have to have a 5 per cent. increase otherwise we shall have to sack 53 people.” Keeping the expenditure of such bodies under control is difficult and, of course, we must have control over the headline cash figure for them. However, to make sure that those cash figures are delivered, there is a case for ensuring that the body count is kept under control, too.
Mr. Laws: Is the hon. Gentleman not concerned that, if this body is to be the independent assessor of standards that we want it to be, it might wish at some stage to take on more responsibility for the oversight of qualifications than was given to it originally by the Government? That might imply an increase in the number of staff, even within the budget envelope. If such powers continue to be exercisable, would there not be a risk that a Secretary of State might interfere in the number of staff if he or she did not wish the powers of oversight to be exercised in that way?
Mr. Gibb: We have to trust Ministers in a democracy to carry out their role with integrity.
Mr. Laws: Blimey, the hon. Gentleman is confident.
Mr. Gibb: Well, if Ministers were appointed from the Conservative Benches, I am sure that they would have integrity. Ministers are accountable to Parliament and to the public.
Sarah McCarthy-Fry: Will the hon. Gentleman give way?
Mr. Gibb: Perhaps the hon. Lady is about to shatter my illusion about Ministers.
Sarah McCarthy-Fry: I merely wanted the hon. Gentleman to clarify that he was not suggesting that it was only Conservative Ministers who have integrity.
Mr. Gibb: Of course not. My jocular response to the intervention was not intended to imply such matters. I was merely saying that Ministers appointed from the Conservative Benches certainly would have integrity.
We believe in creating a regulatory body that is genuinely independent. However, from observing the words of Ofqual since its establishment in 2008 and the activities of and views expressed by the quasi-independent regulatory arm of the QCA since its establishment in 1997, it is clear that more of the same approach will not serve to deliver higher or consistent standards. We need a fresh approach that divorces the regulator from those with vested producer interests so that we can all be sure that a genuine, independent regulator will not allow standards to continue a downward drift. The amendments would go some way to helping change Ofqual into such a body and I hope that the Minister will accept them.
Sarah McCarthy-Fry: One thing on which we can all agree is the importance of an independent regulator so, hopefully, we can start from that premise. The difference of opinion is over how that independence is demonstrated. I am a little concerned by some of the arguments from the hon. Member for Bognor Regis and Littlehampton, which seem to suggest that, if the regulator does not say that standards have fallen, she cannot possibly be independent.
Mr. Gibb: It was not just that comment, but the fact that the regulator has not seen it as her role yet to pursue any of the evidence that has been around for many years and nor did the previous QCA regulatory body. That is what worries me. I was also worried by the fact that she said “if this is a concern”, when clearly the newspapers report massive public concern about such matters daily.
Sarah McCarthy-Fry: If we promoted Government policy on the basis of what we see in the newspaper each day, we would not be in a very good position.
It is important to point out that there is no conclusive evidence. I accept that there have been reviews, such as those to which the hon. Gentleman referred, but most subject reviews have found that standards have been maintained. I wish to refer back to the report quoted by Peter Tymms. It said:
“From this perspective, it is either not really possible to say whether standards have been maintained, or, so far as one can say, the evidence suggests that they have been.”
That was probably the point that Kathleen Tattersall was trying to make. I am not trying to speak on her behalf and I would not dream of doing so. However, the inference that I took from the report was that much of the evidence is conflicting and mostly inconclusive. One of Ofqual’s new roles will be to take on the rolling programme to which the hon. Gentleman referred. It has a clear remit to ensure that standards are maintained.
Mr. Laws: The Minister spoke about maintenance of standards. Will she clarify what she means by that? She will be aware that Mike Creswell has already gone on the record saying that when the modular GCSE is introduced, he expects there to be a consequential improvement in GCSE results. In order to keep standards constant, does the Minister expect there to be a change in the borderlining of grades so that the percentage of students in each cohort getting A, B and C grades remains roughly the same?
Sarah McCarthy-Fry: That is a matter for Ofqual. I accept Mike Creswell’s point, but we have to wait until we get the evidence rather than acting on what people think might happen. It would be unwise for us to go forward saying, “Because he believes that that could be a result of a new modular GCSE”.
Mr. Laws: Kathleen Tattersall’s evidence made it clear that she had an expectation that if a change in an exam improved results, there should be change in the grade boundaries to ensure that the same proportion of students were getting grades A, B and C as before. That is a really important issue in the standards debate. Does the Minister, therefore, agree with Ofqual on that point?
5.42 pm
Sitting suspended for a Division in the House.
5.57 pm
On resuming
Sarah McCarthy-Fry: To repeat to the answer that I gave to the previous question asked by the hon. Member for Yeovil, if his hypothetical example comes to pass it will be for Ofqual to decide and regulate. We have given Ofqual the powers to do that under the Bill, and it would be within its remit to do so.
Mr. Laws: But the Minister must have a view about whether Ofqual’s duty to maintain standards means that, if a qualification changes and there is an improvement in the results as a consequence of that change, there should be an adjustment so that the standards remain the same. She must have a view on whether there should not be an adjustment and the results should be allowed to improve or whether standards should be kept level by adjusting the grade boundaries. Ofqual will not be able to do its job unless it knows what Minister means by “maintaining standards”.
Sarah McCarthy-Fry: It is quite clear what that means. We are looking at consistency over time. Ofqual’s remit is to have consistency over time.
Mr. Laws: Of what?
Sarah McCarthy-Fry: Of maintaining the standard that has been reached. That is the purpose of Ofqual as the regulator. I am not convinced that we are getting anywhere with this exchange, so I shall move on.
I want to pick up on the point about Ofqual only saying that standards have been maintained. With interim Ofqual, most of the subject reviews have found that standards have been maintained. In one or two cases where there have been problems, interim Ofqual has not shirked from coming out and saying so and I have no reason to believe that Ofqual, as constituted, will shirk from doing that. It would be in nobody’s interests, least of all the Government’s, for Ofqual not to be independent and to demonstrate that it is independent; if it were not independent it would lose all credibility. Ofqual will have to report to Parliament and account for the reports that it makes.
I will now move on to a group of amendments—all of which, unsurprisingly, we will resist—that relate to provisions in schedule 9 about the organisation and structure of Ofqual and the appointment and conditions of service of its members and staff. Amendments 50 to 53 relate to the mechanisms for appointing members of Ofqual. The Secretary of State’s interest in appointing Ofqual members and the deputy chair reflects the importance of those roles.
The Secretary of State will want to ensure that the best possible appointments are made to lead an organisation that will play a key part in the education sector. However, the public appointment process will be regulated by the Commissioner for Public Appointments to ensure independence and transparency. We are talking about getting the best people for the job and, once they have been appointed, their reporting line being clearly to Parliament, not to Ministers. Amendment 50 is not feasible, because I do not think that the Crown can appoint lots of members to bodies such as this—apart from anything else, there is a problem of volume. The Secretary of State is the most appropriate person to do the appointing; it is neither realistic nor desirable for the Crown to do it.
6 pm
On amendment 51, Ofqual’s deputy chair will play a vital role—not least because if the chief regulator is absent for a period, the deputy will assume those duties. Again, the Secretary of State’s interest in appointing the deputy reflects the importance of the post. The amendment, which proposes that the ordinary members of Ofqual should elect their deputy, would not be appropriate.
On amendments 52 and 53, given that it is right for the Secretary of State to appoint Ofqual’s ordinary members and deputy chair, it should also be for the Secretary of State to have the powers in the schedule that relate to dismissal. There cannot be one person appointing and another dismissing. We reject the proposals in amendments 52 and 53 that ordinary members should be able to remove the deputy chair and ordinary members.
Amendment 530 is intended to clarify that the Secretary of State’s power to remove a person under the clause refers to his power to remove them from the office of deputy. The amendment is not necessary as that is already the effect of the clause. The Secretary of State’s power to remove an ordinary member from office is found in subsection (5) of the clause and subsection (4) relates only to the office of deputy.
Amendment 529 would make the appointment of the chief regulator subject to the approval of Parliament by requiring the appointment to be made by means of a statutory instrument that either House could annul. The chief regulator will be appointed by Her Majesty by Order in Council, which reflects the independence and importance of the role.
The chief regulator will be the chair and public face of Ofqual. It is essential that the operation of the qualifications system is effective and that the chief regulator is credible and respected. A fair and transparent appointment process is an important start if that is to be achieved. Two things will help with that. First, the Office of the Commissioner for Public Appointments recently extended its remit to cover non-ministerial departments, which we intend will include Ofqual. The OCPA monitors and reports on public appointments, which enables people to have confidence in the appointments process.
Secondly, last year, the Government introduced pre-appointment hearings by Select Committees for key public appointments. That enables Select Committees to take evidence from candidates for certain public appointments before they are appointed. The Government have announced that, subject to the passage of the Bill, the chief regulator is one of the key public appointments that will be subject to pre-appointment hearings and therefore to scrutiny by the relevant Select Committee. This will help the Select Committee to gain confidence in what will be a key appointment for them.
Mr. Charles Walker (Broxbourne) (Con): Will a panel of candidates be shown to the Select Committee or will it purely be the candidate that the Secretary of State wishes to appoint who will appear before the Select Committee?
Sarah McCarthy-Fry: I cannot answer that question off the top of my head, but I will endeavour to find out for the hon. Gentleman.
Any new candidate for the role will in future face scrutiny under these pre-appointment hearing arrangements. Those two factors—the OCPA regulation and the pre-appointment hearings—should give everyone confidence in the independence and transparency of the appointment of the chief regulator. For that reason, the Government reject that amendment.
Mr. Gibb: I have may have missed the point, but will Kathleen Tattersall go before the Select Committee for her appointment to be confirmed, given that she is now chair of interim Ofqual and not of Ofqual as set out in the legislation?
Sarah McCarthy-Fry: No, Kathleen Tattersall is in post. The chief regulator to succeed her that will go through that process.
Amendment 385 would add failure to ensure the standards of regulated qualifications is maintained to the grounds for removal. That amendment is not necessary because paragraph 3(7) already states that the
“chief regulator can be removed because of inability or unfitness to carry out the duties of office”.
If Ofqual fails to maintain the standards of regulated qualifications because of any inability or unfitness on behalf of the chief regulator, the chief regulator can be removed.
Mr. Gibb: The hon. Lady makes an important point. I am interested in what she has to say, bearing in mind Pepper v. Hart. My interpretation of paragraph 3(7)(a) is that not performing the job well would not be sufficient reason for the removal of the chief regulator. To me, it suggests some other form of unfitness to do the job. Will she confirm that if standards are perceived to decline or do decline, that will be grounds for removal under that paragraph?
 
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